Definitions Flashcards
Profit
What a business makes when the income earned (revenue) is greater than the costs of production (expenses)
Business
An organisation that provides goods and/or services to consumers in order to make a profit
Finished Goods
Goods that are ready for customers to buy and use
Market Share
The business’s share of total market is subsided into groups that share one or more common characteristics
Multinational Corporation
A company that has branches in many different countries (sometimes referred to as a Transnation corporation)
Objective
A statement of what an organisation expects to achieve over a set period.
Economy
A system set up to determine what to produce, how to produce and whom production will be distributed.
Economic Growth
When the real value of goods and services increases over a set period of time.
Export
Goods or services sold by one country to individuals, businesses or governments in another country with the aim of extending sales and market penetration.
Business Environment
The surrounding conditions in which the business operates. They can be divided into two broad categories: internal and external.
Internal Environment
Those factors over which the business has some degree of control (sometimes called the micro environment)
Demand
In business terms, the quantity of a product that consumers are prepared to purchase.
Entrepreneurship
The ability and willingness to start, operate and assume the risk of a business venture in the hope of making a profit.
Market Conditions
The features of a market into which a new product or service is to be introduced; they include factors such as the number of potential customers, level of competition and potential for growth.
Market Research
A process of systematically collecting, recording and analysing information concerning a specific market.
